The bank's capital adequacy ratio slipped to 7.57% against the stipulated 9% while its net loss widened to Rs 1136 crore in the September quarter owing to fresh slippages worth Rs 2000 crore.

Uco Bank has been under Reserve Bank of India's prompt corrective action framework due to poor asset quality and erosion of capital.

Kolkata: State-run lender Uco Bank has requested the government to inject Rs 7000 crore to prop up capital, which has gone below the regulatory minimum.

The bank's capital adequacy ratio slipped to 7.57% against the stipulated 9% while its net loss widened to Rs 1136 crore in the September quarter owing to fresh slippages worth Rs 2000 crore. Net loss was Rs 623 crore in the year ago period.

Managing director AK Goel, who assumed charge on November 2, expects the government to infuse capital by March. There was however no confirmation from the government on the size of capital infusion.

The government owns 90.8% in the Kolkata-based lender, which may not be in a position to raise capital from the market before March 2020 for its losses.

"We hope to turnaround in the next financial year," Goel said Monday after announcing its financial results.

Despite business squeeze, the bank's operating profit doubled to Rs 506 crore as against Rs 244 crore in the year ago period. Goel attributed the rise in operating profit to lowering of cost of deposits. Its advances shrunk to Rs 116596 crore at the end of September from Rs 123813 crore a year back.

The bank's executive director Charan Singh said the loan book shrunk as the lender cut down its overseas exposure by 55% to Rs 10,000 crore while domestic loan book remained flat.

Uco Bank has been under Reserve Bank of India's prompt corrective action framework due to poor asset quality and erosion of capital.

One-fourth of its loan assets remained non-performing while there has been a marginal improvement in gross NPA ratio to 25.71% at the end of September from 25.71% a quarter back. The ratio was 19.74% a year ago.

Goel said the bank is focusing on recovery of bad loans while much would depend on the speed of resolution of bad loans under the bankruptcy court.

Uco has referred 124 defaulting loan accounts involving Rs 17750 crore to the National Company Law Tribunal (NCLT) under Insolvency & Bankruptcy Code while 84 cases involving Rs 13443 crore have been admitted for resolution so far.